BANGALORE:The State has appealed to the Reserve Bank of India to simplify the procedure to avail of the benefit of the State govern ment’sprogramme to offer educationloan at six per centinterest.The State feels that the banks shouldnot insist on surety to obtainthe loan.ChiefMinister Yeddyurappa during his meeting with RBI Governor D Subbarao, on Thursday, said that if the banks insist surety for the loan,stu dents belonging to poor, middle class families and those ofback ward sections could not avail of the benefit. Banks should take steps so that more children could enjoy the benefit, he said.
The Chief Minister, speaking to press persons after meeting the governor, said that thegov ernor’s response to the State’s demand was positive and he would discuss the issue with the officers. Yeddyurappa said thatsmall scale industries wereundergo ing difficult situation due to the economic recession.
The RBI should reduceinter est rates for micro and smallin dustries from 13 per cent to 10 pc to bail them out of the crisis.He said the credit depositra tio in the State had come down per cent in the past two years. Similarly advances to agriculture sector and weaker sections have also seena de cline of around 2 per cent.
The State had appealed to the RBI to take measure to pump in more funds toagricul ture sector.The Chief Minister requested the RBI to allow NABARD offer more funds to the Statecooper ative credit institutions, which help in stepping up credit flow in the agriculture sector. Appreciation The CM said the RBI governor had appreciated the State’sef forts in maintaining the fiscal discipline despite the globaleco nomic recession.
Responding to allegations of Opposition parties that the State had no funds fordevelop ment works, he said, “When the RBI governor himself hasap preciated the State’s handling of finance, why should I bother about comments of theOppos ition parties?” The Chief Minister said his government would complete one year in office end of May. He will come out witha de tailed report on thegovern ment’s achievements which will include details on the State’s financial position.